Real Estate Investing in Santa Fe, New Mexico (87505)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 87505 (Santa Fe, NM)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 14.3% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 27.2 — hard to cash-flow at these prices.
What’s happening in Santa Fe, NM (87505)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 87505 Santa Fe
ZIP 87505 in Santa Fe, NM carries a impressive set of headwinds. Home values near $575K and rents of $1,763/mo sit inside a market where underwriting has to be tight.
Rent of $1,763/mo on a $575K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 87505 sits below the stated 0.0% once reality is priced in.
Regionally, 87505 sits on the difficult end of the NM spectrum. The a solid fit for read — for disciplined operators — is that pricing reflects the difficulty.
The demographic picture in 87505 includes headwinds that any investor should price in. Income distribution skews lower than Santa Fe averages, and tenant stability requires active management.
appears to the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Santa Fe:
Property Strategy for 87505
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $279,945 | $1,440 | 3.7% | +5.8% | $279,945 |
| 2BR | $451,225 | $1,750 | 2.8% | +6.0% | $225,613 |
| 3BR | $597,341 | $2,200 | 2.7% | +5.7% | $199,114 |
| 4BR | $819,484 | $2,320 | 2.0% | +6.5% | $204,871 |
| 5BR | $1,340,901 | — | — | +7.5% | $268,180 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 87505 Compare?
| Metric | 87505 | Santa Fe | Santa Fe, NM | New Mexico |
|---|---|---|---|---|
| Home Value | $575,314 | $356,631 | N/A | $308,799 |
| 5-Year CAGR | 3.5% | 3.7% | N/A | 7.3% |
| Avg Rent | $1,763 | $2,254 | N/A | - |
| Cap Rate | 2.4% | 2.6% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 87505 (Santa Fe, NM). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $575,314 |
| Monthly Rent | $1,763 |
| Price-to-Rent | 27.2:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.7% |
| Cap Rate | 2.4% |
| 5-Year IRR | 5.8% |
📈 Home Appreciation
| 1-Year | +1.8% ▲ |
| 3-Year CAGR | +1.1% ▲ |
| 5-Year CAGR | +3.5% ▲ |
| 10-Year CAGR | +6.7% ▲ |
🏠 Rent Trends
| 1-Year | -6.4% ▼ |
| 3-Year CAGR | -1.6% ▼ |
| 5-Year CAGR | +1.6% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.4%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 87505
Population: 32,189
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 87505
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 1,321 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Are homes affordable in Santa Fe, NM?
Santa Fe, NM median home values land near $575K. That is reasonable territory for investors looking at $1,763/mo-per-month rentals.
What do rentals go for in Santa Fe, NM?
Average rent in Santa Fe, NM is approximately $1,763/mo per month. Against $575K home values that yields a reasonable rent-to-price ratio.
What does house hacking look like in Santa Fe, NM?
For house hackers, Santa Fe, NM is a challenging. The $1,763/mo rent on a unit helps defray the mortgage on a $575K property.
Is NM a landlord-friendly state?
The landlord environment in Santa Fe, NM is landlord-friendly. Statewide rules shape most day-to-day operations for rental owners.
Is it easy to find good tenants in Santa Fe, NM?
The renter base in Santa Fe, NM is reasonable for the $1,763/mo price point. Screening well and pricing to market typically yields predictable tenants.
You know 87505 now. You don’t know where it ranks.
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How 87505 ranks in Santa Fe, NM
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